U.S. corporations owe 30 times as much debt as 50 years ago, according to BofA Global. Here’s a look at who owns America’s pile of corporate debt.
There is a growing gap between what markets are expecting and a likely wave of defaults among struggling companies before summer 2021, according to an analysis by S&P Global published Monday.
The report by Nick Kraemer, head of S&P Global Ratings Performance Analytics, found that the dire state of the U.S. economy suggests a higher rate of defaults for what are known as speculative-grade companies. His analysis concluded that between this past June and the same month next year, defaults in that sector would rise from 5.4 percent to 12.5 percent.
Since the virus was declared a pandemic, 14% of Americans — as many as 46 million — said they’ve wiped out their emergency savings, according to a new CNBC + Acorns Invest in You survey.
‘A large market correction, should one materialise, would encourage more professional selling that could overwhelm the buy-the-dip retail investor.’
That’s Mohamed El-Erian, Allianz’s chief economic adviser, explaining in an op-ed for the Financial Times how action in the options pits should be taken as a warning by retail investors who have been cashing in on the stock market’s relentless push higher in recent months.
“The seemingly endless rally… gives the impression that prices are endorsed and supported by the entire professional investment community,” he said. “After all, despite the vocal concerns over valuations having split away from underlying corporate and economic fundamentals, few fund managers have been willing to challenge the market by placing outright shorts. “
When the Federal Reserve writes a paragraph that includes the words "the steepest decline in history," you may want to read that paragraph.
Q2 Household Debt & Credit Report: pic.twitter.com/wLmjVZEFhz
— Jeff Weniger (@JeffWeniger) September 1, 2020
And the Fed is getting ready to brrr t.co/yYA5Mo7pt6
— zerohedge (@zerohedge) September 1, 2020
S&P 500’s dividend yield now at lowest point in nearly 15 years, falling sharply from levels last seen during GFC pic.twitter.com/zSpO623CMW
— Liz Ann Sonders (@LizAnnSonders) September 1, 2020